IAMGOLD (TSX: IMG) reported second quarter revenue of $856.9 million, down from $1.03 billion in the first quarter, as a softer gold price outweighed a modest lift in output.
Net earnings attributable to equity holders was $230.5 million, or $0.40 a share, compared with $379.7 million, or $0.65, three months earlier. Adjusted net earnings followed the same path, at $241.6 million, or $0.42 a share, against $391.1 million and $0.67 in the first quarter.
Adjusted EBITDA came in at $507.3 million, down from $666.3 million. Cash flow from operations was $445.1 million, versus $569.9 million.
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The balance sheet meanwhile continued to improve. Cash and equivalents finished June at $501.4 million, little changed from $550.2 million, while debt fell to $449.3 million from $549.2 million. That debt paydown was enough to put the company in a net cash position of $52.2 million excluding lease liabilities. Total liquidity climbed to $1.35 billion from $1.10 billion after IAMGOLD enlarged its credit facility to $850 million and pushed maturities out to 2030. The company also bought back $147.9 million of stock during the quarter, or 8.6 million shares, taking repurchases since the program began to $510.4 million.
Attributable gold production rose to 188,100 ounces from 183,600, though the mix shifted considerably. Côté Gold delivered 67,300 ounces on a 70% basis, up from 52,300 as the plant recovered from a conveyor belt replacement and ran near full capacity in June. Essakane slipped to 88,400 ounces on an 85% basis from 95,100, and Westwood eased to 32,400 ounces from 36,200.
First half output of 371,700 ounces leaves the company at roughly 48% of the midpoint of full-year guidance of 720,000 to 820,000 ounces, which was left unchanged.
Cost of sales edged up to $1,651 an ounce from $1,619, and cash costs excluding royalties rose to $1,289 from $1,201, above the $1,100 to $1,250 annual range. All in sustaining costs including royalties reached $2,271 an ounce, up from $2,124 and above guidance of $2,000 to $2,150. Royalties move with the gold price and the guidance assumes $4,000 gold, which accounts for part of the gap.
“IAMGOLD delivered another strong and safe quarter,” President and Chief Executive Officer Renaud Adams said, describing the company as “firmly on track” to meet its annual target.
IAMGOLD last traded at $22.48 on the TSX.
